工作论文 PAPERS
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Let the Good Times Roll: Subjective Expectations and Asset Management
Using a unique regulation implemented in a developing financial market – the mandatory disclosure of macroeconomic and security-market outlooks required of all Chinese mutual funds – we construct direct measures of portfolio managers’ subjective expectations and their influence on asset allocation decisions. Despite their sophisticated skills, high-powered incentives, and access to extensive information,...
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Competition, Cannibalization, and New Product Introductions: Evidence from th...
When there is uncertainty about a new product’s net value, firms treat the timing of the product launch as a real option. When the potential cannibalization costs imposed on existing products are important, the timing decisions are sensitive to competitors’ actions, as they affect these costs. In the pharmaceutical industry, we show that firms often delay new launches until generic entry threats ...
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Fake Entry
We show the financial interests of a generic-drug manufacturer's largest shareholders in a branded competitor predict the generic's likelihood of being the first to challenge a drug patent. Conditional on a challenge, these common-ownership links predict settlements and delayed generic entry in exchange for payments to the generic. The stock price reactions are positive for the brand but negative for the generic, implying wealth transfers from one portfolio firm to another, with net benefits to investors. These facts suggest that in supracompetitive markets, corporate objectives depend on shareholder preferences.
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Nominal Rigidities, Earnings Manipulation, and Securities Regulation
How does output-price stickiness affect managers’ incentive to manipulate earnings and their firms' financing costs? We show firms with sticky-output prices experience more negative returns during tight windows around the Enron scandal and are more likely to misreport earnings when securities regulation is lenient, and their misreporting drops significantly after regulation becomes stringent. Sticky-price firms also face improved credit-market conditions following securities regulation. We build a model of earnings manipulation with endogenous manipulation costs to rationalize our empirical findings. The study suggests firms' stickiness in product pricing facilitates insiders' selfinterested behavior, imposing agency costs on firms.
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Multinational Expansion in Time and Space
This paper studies the expansion patterns of multinational enterprises (MNEs) in time and space Informed by a se
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Asylum Assignment and Burden-Sharing
We analyze the problem of matching asylum seekers to member states, incorporating wait times, preferences of asylu
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Information Design for Social Learning on a Recommendation Platform
A recommendation platform sequentially collects information about a new product revealed from past consumer trials
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No Sparsity in Asset Pricing: Evidence from a Generic Statistical Test
We present a novel test to determine sparsity in characteristic-based factor models Applying the test to industry
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How do Multinationals Impact China’s Technology? The Role of Quid Pro Quo Po...
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Transcontinental Railways and Hinterland Development